• About
    • About Accru
    • The Accru Advantage
    • Testimonials
    • Our People
    • Our Services
    • International Affiliations
    • Corporate Social Responsibility
    • Join the Accru Network
    • Careers
  • Locations
    • Accru Felsers Sydney
    • Accru Melbourne
    • Accru Rawsons Brisbane
    • Accru Perth
    • Accru Harris Orchard Adelaide
    • Accru Hobart
  • News & Tools
    • News
    • Publications
    • Accru Tax Guide 2017/18 App
    • Fact Sheets
    • Online Portfolio Links
    • Useful Business Websites
  • Careers
    • Working with Accru
    • Culture & Values
    • Accru in the Community
    • Current Vacancies
  • Contact Us
Client Login
Accru Logo Skip to content
  • COVID-19
  • Accounting
    • Cloud Accounting
    • Outsourced Accounting
    • CFO Services
    • Corporate Compliance
    • Find an Expert
    • Testimonials
  • Audit
    • External Audit
    • Internal Audits
    • SMSF Audits
    • Due Diligence
    • Data Analytics
    • Payroll Data Analytics
    • Find an Expert
    • Testimonials
  • Business Advisory
    • Business Management
    • M&A and Business Sales
    • Valuations
    • Restructures
    • Succession Planning
    • Business Turnaround
    • Management Consulting
    • Find an Expert
    • Testimonials
  • Taxation
    • Tax Compliance
    • Tax Advisory
    • FBT & Salary Packaging
    • GST & Indirect Tax
    • International Tax
    • Find an Expert
    • Testimonials
  • Wealth Management
    • Wealth Creation
    • Superannuation & Retirement Planning
    • Self Managed Super Funds
    • Estate Planning
    • Find an Expert
    • Testimonials
  • Finance & Insurance
    • Mortgage Broking
    • Commercial Finance
    • Risk Insurance
    • Find an Expert
    • Testimonials
  • International Business
    • Services for German-speaking companies
    • Services for Chinese-speaking companies
    • Starting a business in Australia
    • Expanding overseas
    • Transfer Pricing Australia
    • International Tax
    • Find an Expert
  • Industries
    • Pharmacies
    • Medical Practitioners
    • Not-for-Profit
    • Education
    • Property & Construction
    • Professional Services
    • Manufacturing & Distribution
    • Finance & Investment
    • Retail
    • Digital, Media, Emerging Technologies
Client Login
  • Accru Acccountants | Audit | Tax | Business Advisory
  • Services
  • About
    • About Accru
    • The Accru advantage: quality, innovation and value
    • Testimonials
    • Our People
    • International Affiliations
    • Corporate Social Responsibility
    • Join the Accru Network
    • Careers
  • Locations
    • All Locations
    • Accru Felsers Sydney
    • Accru Melbourne
    • Accru Rawsons Brisbane
    • Accru Perth
    • Accru Harris Orchard Adelaide
    • Accru Hobart
  • News & Tools
    • News
    • Publications
    • Accru Tax Guide 2017/18 App
    • Fact Sheets
    • Online Portfolio Links
    • Useful Business Websites
  • Careers
    • Careers
    • Working with Accru
    • Culture & Values
    • Accru in the Community
    • Current Vacancies
  • Contact Us
Facebook LinkedIn Twitter Youtube
Accru logo

Ho! Ho! Ho! Where’s my cash flow?

By Simon Hilton / December 6, 2018

Christmas comes but once a year… but for many small business owners, that’s one too many times. Whilst many of us are reveling in the festive season with family and friends, for the small business owner it can be a time of long hours, high stress and no cash.

Christmas hat and coins

Long Christmas work hours often generate high sales but Christmas can also mean additional business costs. Whilst strong sales are always desired, what businesses really want is payment. This time of year can put painful pressure on cashflow due to:

  • Sales that are on credit.  We all know what happens in Australia in January – the nation goes to the beach and no one pays those outstanding accounts.
  • Inventories built up during the lead up months in anticipation of strong sales – but now you have to pay for the stock you’re selling.
  • Staff working long hours, and you need them to – but wages and overtime have to be paid now. And many staff go on extended leave in January which places further pressure on cash flow.

If all this sounds like the perfect storm that’s because for many businesses it is.

So how can you turn your Christmas cashflow woes into a sack-of-cash under the Christmas tree instead?

  1. Plan and prepare for seasonal fluctuations. I am a strong advocate of annual cash flow forecasts to understand the impact of Christmas and seasonality to a business. An accurate forecast allows you to make informed decisions prior to cash evaporating
  2. Communicate with your banks and funding partners. Using a cash flow forecast you can illustrate the impact of seasonality on your business and arrange short term extensions to overdraft and other facilities.
  3. Talk to your major suppliers and be proactive if additional time is required to pay the overdue accounts. Your business will be important to them but debt collectors don’t go on holidays, so don’t bury your head in the sand in January.
  4. Manage your customers  Ensure that you are selling to people who can and will pay. Be proactive in chasing payments and consider what incentives you might be able to put in place for early payment. Understand that many businesses will shut in late December and do your best to ensure you’re top of their list this Christmas
  5. Make payment easy  Ensure that you can offer credit card, BPay and other means of payment. No more cheques in the mail – make sure you can take payments online and over the phone.
  6. Manage your inventory in the lead up to Christmas  What you buy in November you’ll pay for in January. So make sure you’ve sold it by December! Or don’t buy it.

Accru is highly experienced in improving business cashflow. If you’d like our help to ensure a stress-free Christmas for your business, please contact us today.

Wishing you all a very Merry Christmas!

About the Author

Simon Hilton, Accru Melbourne

Simon is client driven, striving for the best possible outcome for his clients in every situation. He works primarily with small and mid-sized businesses, specialising in management advice, cash flow management, restructuring (including for family succession), tax planning and business strategies. Simon plays a key role in the Australian Chartered Accounting Training Group (ACATG) and speaks widely on GST, particularly in the health and welfare sector. Read more.

Leave a Reply

Your email address will not be published

Cancel

News & Tools

  • All News
  • All
    • Business Growth
    • Digital Business
    • Financial Management
    • International Business
    • Audit Risk & Assurance
    • Tax Essentials
    • Wealth & Superannuation
    • Accru News
  • Publications
  • Accru Tax Guide 2017/18 App
  • Fact Sheets
  • Online Portfolio Links
  • Useful Business Websites

Subscribe to our Newsletter

Subscribe to the Accru Newsletter Subscribe

Latest News

Australian Reporting Framework Update
Read article

Accru Top
Services
  • Accounting
  • Audit
  • Business Advisory
  • Taxation
  • Wealth Management
  • Finance & Insurance
  • International Business
  • Industry Sectors
About Us
  • About Accru
  • The Accru advantage: quality, innovation and value
    • Starting a Business
    • Expanding a Business
    • Reaping the Rewards
  • Testimonials
  • Our People
  • Our Services
  • International Affiliations
  • Corporate Social Responsibility
  • Join the Accru Network
  • Careers
Locations
  • Sydney
  • Melbourne
  • Brisbane
  • Perth
  • Adelaide
  • Hobart
News & Tools
  • News
    • Business Growth
    • Finance & Insurance
    • International Business
    • Risk & Assurance
    • Tax & Accounting
    • Wealth & Superannuation
    • Publications
  • Accru Tax Guide 2017/18 App
  • Fact Sheets
  • Online Portfolio Links
  • Useful Business Websites

Follow Accru Australia

Facebook LinkedIn Twitter Youtube
Subscribe to Accru's e-news

Accru's e-news updates are designed to keep you up to-to-date on essential business topics.

Subscribe

© 2021 Accru

Terms of Use | Privacy Policy

Site by Click2It

×